Garuda Imposes Insurance Surcharge

Indonesia's national airline, Garuda Indonesia, is charging an additional US$ 5 to each of its international passengers to cover sharp increases in international insurance premiums following the loss of 4 aircraft on September 11 in the terrorist attacks on America. The new charge was imposed on flights on Garuda, effective October 1.

In charging the fee, the airline is following similar practices introduced by other carriers including KLM, Philippines Airlines, Thai, Malaysia, and Singapore Airlines.

According to an airline spokesman, Garuda's annual insurance burdens are expected to increase by US$ 20-25 million in the wake of the U.S. attacks. The airline has not yet announced if a surcharge will be imposed on its domestic passengers.